Chandigarh comes a close second in real estate prices, financial services and business environment, but lags behind in other five parameters necessary for a metro city, says the ASSOCHAM Eco Pulse Study. The study ranks four tier-II cities — Pune, Ahmedabad, Lucknow and Chandigarh — as the most likely contenders for a metro status after Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad.

They were assessed on eight parameters necessary for a metro city, such as social infrastructure, infrastructure availability, real estate cost and availability, transportation facility (connectivity), presence of quality educational institutes, employment opportunity, facility of financial services and business environment.

According to the analysis, Pune occupies the first position, though it needs to improve on transportation, social infrastructure and financial services. Ahmedabad is the second city with most potential to be a metro, as it provides good infrastructure facilities and connectivity. The study puts Lucknow in the third place as it needs to pick up on infrastructure, business environment and social infrastructure.

Chandigarh, the smallest of the four in terms of area and population, ranks fourth though it fares well in real estate prices, financial services and business environment. At 9.21 per cent, it is the least employment-generating city among the four emerging metros.

Real estate cost and availability

Chandigarh is considered to be the next emerging real estate market after Pune. With the maximum population among the upcoming cities, the Maharashtra town has outpaced the other three cities on this parameter.

Social infrastructure

Chandigarh ranks third on social infrastructure with 81.9 per cent literacy rate and due to the presence of prominent institutes like Institute of Microbial Technology (IMTECH), Centre for Defence and National Strategic Studies (CDNSS). Ahmedabad occupies the first rank with a literacy rate of 79.89 per cent and high-grade institutes Indian Institute of Management (IIM), National Institute of Design (NID), National Institute of Fashion Technology (NIFT) and Entrepreneurship Development Institute of India (EDII).

Employment

At 9.21 per cent, Chandigarh is the least employment-generating city. The sectors offering maximum employment are IT, banking, insurance and retail, while Pune has the maximum share of 32.74 per cent in the total jobs tracked by ASSOCHAM Placement Parameter for the period January-June 2008.

Presence of quality educational institutes

Chandigarh occupies third position as the city has a university and eight government colleges, 13 prominent higher learning institutes and one government recognised resource and development centre while Pune and Luchnow rank first and second.

Infrastructure

Pune notches the top position when it comes to sub-parameters like entertainment avenues, malls and multiplexes and star hotels. Chandigarh is placed third in this category.

Connectivity

The parameter of transportation facility is based on a few sub-parameters, such as status of a junction station, railway connectivity with the rest of the country, international airport and the number of national highways passing through the city. Chandigarh ranks last on this front with a non-junction railway station, a domestic airport and only two national highways touching the city. Lucknow occupies the first rank in good connectivity.

Educational facilities

This parameter includes sub-parameters like the presence of central and state universities, other renowned/qualified institutions and presence of R&D centres. Chandigarh ranks third while Pune, home to nine universities, 80-100 public and private institutes along with six government-recognised R& D centres, tops in this parameter.

Financial services

Chandigarh is placed second on sub-parameters such as number of offices of scheduled commercial banks, density of offices of scheduled commercial banks per population, number of accounts of the scheduled commercial banks per population, presence of brokerage firms, stock exchange and transparency in trading system. Lucknow occupies the first position while both Pune and Ahmedabad are placed third in the study.

Business environment

Chandigarh ranks second after Pune on parameters such as progressive government policies, investment scenario, availability of office space, availability of relatively better infrastructure and rising quality of life that drives demand for products.